Deep Industries share price soared by 17% to reach a 52-week high on Monday's session following the company's success in securing a significant contract worth ₹1,402 crore from Oil and Natural Gas Corporation (ONGC), a leading provider of integrated solutions for Oil & Gas field operations. This contract marks the largest project awarded to the company so far and will more than double its current order book, which was valued at ₹1,246 crore as of June 30, 2024.
The company stated that the contract, which is for 15 years, is for Production Enhancement Operations (PEC) in the mature fields of ONGC's Rajahmundry Asset. Deep Industries share price today opened at ₹449.95 apiece, the stock touched an intraday high of ₹465.35, and an intraday low of ₹442 per share.
According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One,the stock has seen a strong gap up opening and initial dip has been bought into with strong volumes headed towards upper circuit, the stock is likely to headed further in near term with ₹500 as resistance and ₹440 as support.
In the past year, Deep Industries' stock price increased by 76.93%, surpassing its sector by 26.94%, as per trendlyne data.
According to the company's exchange filing, the purpose of PECs is to increase hydrocarbon output from mature, depleted, and ageing fields. PECs normally last an additional 15 years beyond the asset's initial life. By using safe and effective operating procedures as well as appropriate methods and technologies, ONGC hopes to further develop the hydrocarbon reserves from the Contract Areas at the Rajahmundry asset in a way that enhances present production and the eventual recovery of hydrocarbons.
“We are thrilled to announce this landmark achievement as we extend our expertise into Production Enhancement Contracts (PEC). This strategic win positions us to play an increasingly integral role in the evolving oil and gas services value chain. With over three decades of experience in the sector, Deep Industries is well-equipped to optimise oil and gas production through the deployment of proven, advanced techniques," said Paras Savla, MD, Deep Industries Ltd.
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